Sabrix

Beginning 1 September 2010, interest and penalties on unpaid tax liabilities occurring before 31 December 2008 will be waived if the unpaid liabilities are paid in full during the amnesty period. The amnesty period ends on 15 October 2010.

The amnesty program includes privilege taxes, estate taxes, income taxes, withholding taxes, estimated taxes, cigarette and tobacco taxes, retailer’s sales taxes, compensating use taxes, local sales and use taxes, liquor enforcement taxes, liquor drink taxes and mineral severance taxes. It is not available for any liabilities in audit, subject to administrative or judicial appeal, in bankruptcy or involved in a criminal investigation.

Source:
“2010 Legislative Enactments and Changes” from the Kansas Department of Revenue.

On 2 September 2010, the Greeley City Council is set to vote on a 0.75 percent sales and use tax increase. The extra sales tax revenue would be earmarked for road maintenance.

Additionally, the will vote on the continuation of the 3 percent food sales tax. The sales tax revenue from the food tax would be used for funding roads, public buildings and parks. The food tax won’t sunset until December 2011, but the Council hopes to have a better picture of its financial future and therefore placed it on the ballot early.

Source:

www.greeleytribune.com/article/20100831/NEWS/100839949/1002&parentprofile=1001
 

From 2 September 2010 to 5 September 2010, Louisiana will host its annual Second Amendment Weekend Sales Tax Holiday. During this time, qualifying purchases of firearms, ammunition and hunting supplies will be exempt from state and local sales and use taxes. The sales tax holiday only includes non-business purchases.

For a complete list of eligible items, please visit the LA DOR at http://revenue.louisiana.gov/sections/general/hottopics/secondamendment.aspx.

Nevada Medical and Surgical Supply Company must pay $13,000 in back taxes. Earlier this month, the Nevada Tax Commission ruled that sales and use tax applies to the sales of wheelchairs and walkers.

The case, which has been appealed a couple of times, was first decided in favor of the State. A second judge ruled in favor of the company. A third ruling has again sided with the State, noting that the judge in the second instance cited an inapplicable law in his decision.

Source:

www.lasvegassun.com/news/2010/aug/09/state-sales-tax-must-be-paid-wheelchair-purchases/
 

An Arizona Krispy Kreme franchise had argued in a lawsuit that they were not subject to state sales tax, as their products should be treated under the same guidelines as a grocery items, which are exempt from sales tax. They argued that since the vast majority of their customers don’t eat the donuts on the premises, they are in effect, like a grocery store and should not be subject to sales tax. The company wanted a refund of $2.3 million for taxes paid during 1 June 1999 and 30 April 2004.

The court rejected their suit, stating that the company provides tables and chairs and does not ask customers whether they intend to eat their donuts at the restaurant.  As such, the company will not receive its requested refund.

Source:

verdenews.com/main.asp

According to the media the Estonian government has approved the following draft amendments to the country’s VAT Act:

• VAT payers whose turnover does not exceed €200,000 would be entitled to use cash-basis VAT accounting; The amendment is based on EC Council decision 2009/1022 of December 15, 2009, which authorizes Estonia to apply a measure derogating from
article 167 of EU VAT Directive (2006/112/EC).

• For anti-evasion purposes, taxation by reverse charge would be extended to the
supply of waste metal and real estate.

• The special tax regime applicable to cross-border supplies of natural gas and
electricity via network would also be extended to heating and cooling energy. Under
the special tax regime, the place of supply of heating and cooling energy would be the
place where the customer is established. This amendment would implement changes
introduced to the EU VAT Directive by Council Directive 2009/162/EC.

If adopted, the amendments will enter into force on January 1, 2011.

Under new guidelines written by the Georgia transportation planning director, if voters approve a 1 percent sales tax increase for 2012, then a portion of the increased sales tax revenue collected can go to fund Atlanta transportation. The tax, if passed, will reel in an estimated $5 billion over 10 years to fund a variety of transportation projects.

The guidelines have not been finalized. The Atlanta Regional Commission will help craft the final guidelines and is asking for public comment. Comments are being accepted until 2 September via opinion@atlantaregional.com. Visit the Georgia Department of Transportation for more information at dot.ga.gov.

Source:

The counties of Hanover, Onslow, and Wilkes will impose an additional 0.25% sales tax effective 1 October 2010. Currently, 12 other counties have a county sales and use tax rate of 2.25%. The increases will help offset budget deficits.

As noted in the July Sales and Use Tax Rate Update, written by Bernadette Sablan, effective 1 July 2010, the counties of Hertford, Lee, Randolph, and Rowan enacted an additional 0.25% sales and use tax.

For further information regarding North Carolina sales and use tax rates, visit the NC DOR.

Source:

As discussed in an earlier post, Oklahoma passed House Bill 2359 which prohibits the cities from collecting sales taxes and requiring them to use the Oklahoma Tax Commission (OTC) for collections. Before the law was passed, the city of Tulsa had been negotiating with the Alabama based company, Revenue Discovery Systems, to collect their taxes. The city says that using this company as opposed to the OTC, will save them millions of dollars.

In response to House Bill 2359’s passage, the city of Tulsa has filed a lawsuit against the state of Oklahoma stating that the new law is unconstitutional and that they have the right to use a private company to collect their taxes. The state has responded that since the law passed, the city of Tulsa no longer has a choice as to who they can use to collect their taxes.

It remains to be seen whether any other Oklahoma cities will join the fight. I will continue to monitor this law suit and post updates as they become available.

Source:

www.google.com/hostednews/ap/article/ALeqM5g1o3t7k6paf_5ZoX7_yKDXz6swDQD9HMO0S80
 

It has been reported that  Britain's tax authority will introduce reverse value-added tax (VAT) charges relating to carbon emissions trading from November 1, 2010, replacing a zero tax rate implemented last year to prevent fraud.

The zero VAT rate was put in place in July 2009 as an interim measure to halt rapidly escalating carousel fraud in spot trading of European Union carbon permits, called EUAs, HMRC said.

The new reverse charge will also apply to sales of two types of Kyoto Protocol carbon offsets called Certified Emissions Reductions (CERs) and Emissions Reduction Units (ERUs).

HMRC had been awaiting an EU-wide directive to provide a reverse charge option, which was finally adopted by member states in March.

You can access the HMRC announcement at: http://www.hmrc.gov.uk/briefs/vat/brief3510.htm

It’s that time of the month again to take a look at the sales and use tax changes happening in September.  This month there are only a few states with rate changes but we do have some Sales Tax Holidays to report.  In August we had many states participate in Back To School Sales Tax Holidays.  In September there are a few Sales Tax Holidays giving shoppers the ability to make certain purchases tax free.

Alabama
Pinson City – 2.0% sales and use (New Levy)
Creola City – 4.0% sales and use; Creola police jurisdiction – 2.0% sales and use
Douglas City – 3.0% sales tax only (effective 8/1/2010)
Elba City – 4.0% sales and use, 2.0% rental sales and use; Elba police jurisdiction – 2.0% sales and use;

Arizona
Florence City – 3.0% use tax and rental use tax only

Oklahoma
Haskell County – 1.5% sales and use

Sales Tax Holidays

Kenai Borough, Alaska
There will be an exemption for the Borough of Kenai, Alaska from sales tax on non-prepared food from 1 September 2010 to 31 May 2011. The city of Homer is participating in this holiday exemption.  This Sales Tax Holiday does not apply to all food items sold by restaurants and restaurant type sellers and all prepared foods.

Wrangell, Alaska
On 11 September 2010, the city of Wrangell, Alaska will grant sellers the opportunity to participate in a Sales Tax Holiday. The Sales Tax Holiday will exempt purchases of all tangible personal property and services, excluding rentals.

West Virginia
West Virginia is having a Sales Tax Holiday from 1 September 2010 to 30 November 2010 on non-business purchases of Qualified Energy Star Products costing $5000 or less per item. The Sales Tax Holiday does not apply to business transactions in West Virginia. For business transactions, the full respective tax rates are applicable.

Stay tuned for the upcoming October sales and use tax changes next month.  There are sure to be a lot more rate changes in October because we tend to see a high volume on the quarter months. 
 

The rules are as follows according to Canada Post:

• Most Canada Post goods and services are subject to the Federal Goods and Services Tax (GST), and to the Provincial Sales Tax (PST or QST) or to the Harmonized Sales Tax (HST), where applicable.
• Effective July 1st, 2010, Canada Post goods and services will be subject to Ontario and British Columbia HST at the rate of 13% and 12%, respectively.
• There are certain items sold by Canada Post that are not taxable such as postal Money Orders, the fee on a Money Order and the exchange on a Money Order.
• Certain Provincial governments and their entities and certain Indian Bands and Natives are exempt from paying sales taxes.